Maryland’s Tech Industry Adds 3,200 Jobs
Maryland Has the 5th Highest Concentration of Tech Industry Workers of All Cyberstates

Maryland's high-tech industry added 3,200 net jobs – a two percent rise – in 2006, the most current state data available. Maryland moved up from the 12th to the 11th largest cyberstate – after moving up from 13th to 12th in 2005 – employing 165,600 tech workers with a total payroll of $13.4 billion. Maryland has the 5th highest concentration of tech industry workers of all cyberstates with 80 out of every 1,000 private sector workers employed by the high-tech industry.

Maryland’s tech industry job gains in 2006 came predominantly in the services sectors. Computer systems design and related services added 2,200 net jobs, engineering services added 1,200 net jobs, and R&D and testing labs added 700 net jobs. Overall tech manufacturing shed 500 net jobs in 2006.

Venture capital investments in Maryland totaled $635 million in 2007, down three percent from $657 million in 2006, ranking the state 7th nationwide by this metric.

“Maryland continues to move up the ranks in terms of tech industry employment,” said Matthew Kazmierczak, Vice President of Research and Industry Analysis, AeA. “This accounts from our 5th place ranking nationwide in terms of concentration of tech workers, with 80 of every 1,000 private sector workers employed by high tech. And these jobs are well compensated, paying 82 percent more than the state’s average private sector wage.”

“The one downside to Maryland’s story from this year’s Cyberstates is that, while we added jobs in 2006, the job growth was slower than in 2005 – 3,200 instead of 4,500,” continued Kazmierczak. “To ensure that job growth in the future is more robust, state and local leaders need to work to improve math and science education in our schools and to support research at our public universities. Unless we start educating more scientists and engineers and keeping them in state, we cannot maintain the growth of high tech in Maryland.”

Nationally, Cyberstates 2008 shows that the high-tech industry added jobs for the third consecutive year. Tech industry employment totaled 5.9 million, after adding 91,400 jobs in
2007. This is on top of job gains of 139,000 in 2006 and 87,400 in 2005.

This 11th edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state in terms of high-tech employment, wages, payroll, and establishments. Cyberstates also offers data on venture capital investments and R&D expenditures.

Two other major AeA cyber reports are forthcoming that analyze the U.S. high-tech industry: Cybercities 2008: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities, and Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech International Trade.

AeA members can purchase Cyberstates 2008 for $125; non-members for $250. Visit www.aeanet.org/cyberstates to download the report, or call 408.987.4200. 

What Does High Tech Mean for Maryland?

• 165,600 high-tech workers in 2006 (11th ranked cyberstate)
   
• 3,200 jobs added between 2005 and 2006
   
• High-tech firms employed 80 of every 1,000 private sector workers in 2006, ranked 5th nationwide
   
• High-tech workers earned an average wage of $80,800 (11th ranked), or 82 percent more than Maryland's average private sector wage
   
• A high-tech payroll of $13.4 billion in 2006, ranked 12th nationwide
   
• 9,800 high-tech establishments in 2006, ranked 13th nationwide
   
• Venture capital investments of $635 million in 2007, down three percent from $657 million in 2006, ranked 7th nationwide
   
• R&D expenditures of $14.8 billion in 2004, ranked 4th nationwide

Maryland’s National Industry Sector Rankings:

• 6th in defense electronics manufacturing employment with 8,500 jobs
   
• 6th in computer systems design and related services employment with 56,200 jobs
   
• 7th in engineering services employment with 31,900 jobs

Source: Cyberstates 2008

Data are for 2006 unless otherwise noted.

2006 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Published by AeA, Advancing the Business of Technology (www.aeanet.org)

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About AeA

AeA, the nation’s largest technology trade association, representing all segments of the high-tech industry, is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs. For more information, please visit http://www.aeanet.org.   

This page was last updated on 04/01/08.   
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